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East Devon Area Profile Produced for Devon County Council February 2014

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East Devon Area Profile Produced for Devon County Council February 2014 East Devon Area Profile TABLE OF CONTENTS EAST DEVON IN SUMMARY............................................................................................ 1 1 INTRODUCTION ....................................................................................................... 2 2 THE EAST DEVON LABOUR MARKET ..................................................................... 4 3 CURRENT ECONOMIC PERFORMANCE .................................................................. 7 4 ECONOMIC FORECASTS ....................................................................................... 14 5 WHAT ARE THE IMPLICATIONS FOR EAST DEVON? ............................................ 19 ANNEX 1: SUMMARY TABLE DATA SOURCES ............................................................ 21 2 East Devon Area Profile East Devon in Summary CONTRIBUTION TO THE DEVON ECONOMY East Devon is Devon’s largest district in population terms, and second largest in employment terms . It benefits from its proximity and links with Exeter, including the Exeter and East Devon Growth Point. East Devon’s projects in the Growth Point include the Flybe Training Academy and the Clyst Honiton bypass. The environmental assets of the district, including two areas of Outstanding Natural Beauty and the Jurassic Coastline world heritage site make East Devon attractive to tourists; tourism-related sectors are well-represented. The district also benefits from the presence of Exeter International Airport, a regional asset reflected in East Devon’s employment specialism in air transport. Indicator 2012 % of Devon Employment 42,800 15% Businesses 5,395 18% Real Value Added £1681m 14% Population 134,400 18% LABOUR MARKET Indicator Key Points Latest Position Employment Rate Exceeds the national average Highest employment rate in Devon (linked to low unemployment 78.1% levels) Unemployment Rate Below the national average 2.7% Lowest unemployment rate in Devon Inactivity Rate Lower than the national average 19.8% Fourth lowest inactivity rate in Devon NVQ L2+ Skills profile exceeds the national average from NVQ L1 to L3 82.4% Fifth highest proportion qualified to NVQ4+ in Devon, in line with NVQ L4+ national average 34.2% CURRENT ECONOMIC PERFORMANCE Indicator Key Points Latest Position Employment Density Small employment base relative to size of working age population – density lags behind national average 57,192 per 100,000 w orking age residents Fourth highest in Devon Business Density Business density exceeds the national average 72 per 1,000 w orking Second highest business density in Devon after South Hams age residents High 3 year survival rates and average start up rate Productivity Equivalent to 80% of the national average £30,562 per Fourth lowest productivity levels in Devon employee Highly Skilled Highly represented due to high numbers of managers and Occupations particularly professionals 48% Administrative and secretarial and caring and leisure occupations are highly represented Average Annual Lower than resident based earnings in North Devon £19,241 Workplace Earnings Both workplace and resident earnings lower than national average ECONOMIC FORECASTS % Change 2013- Indicator Key Points 2025 Employment Highest proportionate increase in Devon exceeding national average +5,900 / 10.7 Driven by construction, accommodation and food and business and finance Real Value Added Third highest proportionate increase in Devon, exceeding national average + £523m / 31.0% Growth balanced across a number of sectors Productivity One of three districts where relative productivity is forecast to remain static +18.3% Forecast to be equivalent to 80% of national average by 2025 See Annex 1 for data sources 1 East Devon Area Profile 1 Introduction 1.1 In both the UK and the wider global economy, there are signs of economic recovery and a renewed focus on growth is beginning to emerge. Across England, new plans for economic and social development are taking shape in local areas to help secure funding and/or inform how it will be deployed (for example, through the 2014-2020 Structural and Investment Funds and Strategic Economic Plans, both of which are being planned at a Local Enterprise Partnership level). Understanding current economic conditions and the future prospects of local economies can support this process. The East Devon Area Profile 1.2 This report provides a profile of East Devon, which has been produced on behalf of Devon county Council as part of their function to provide economic intelligence across the county, to inform local economic development plans. The report draws upon standard datasets and Cambridge Econometrics’ Local Economy Forecasts Model (LEFM) to set out the district’s contribution to the Devon economy, how the economy currently performs and headline economic forecasts relating to employment, added value and productivity. Introducing East Devon 1.3 East Devon is the sixth largest local authority area in Devon, located on the boundary with South Somerset and West Dorset, and covering an area 823,732m2. The district boasts exceptional environmental assets including two Areas of Outstanding Natural Beauty (AONB) and the Jurassic Coastline world heritage site which runs the length of the district’s southern border. East Devon also contains the main airport for the south west – Exeter International Airport – located in the west of the district, providing linkages to a range of UK (including Edinburgh, Belfast and Manchester) and European destinations (including Paris, Geneva, and Amsterdam). A Varied Geography 1.4 East Devon’s geography is varied, ranging from urban fringe on the edge of Exeter, to smaller seaside, market towns, and villages. The district is officially classified as ‘Rural 50’, with at least 50%, but less than 80 per cent of the population living in rural settlements and larger market towns1. The large majority of land in East Devon (91%) is classified as green space, accounting for 748,938m2 of its total area. As such, the district has a low population density of 1.7 persons per hectare, compared to the England average of 4.1. Of the district’s 68 parishes, just four have a population density above this average. 1.5 There are ten parishes in East Devon with population levels exceeding 3,000 people (Axminster, Broadclyst, Budleigh Salterton, Colyton, Exmouth, Honiton, Ottery St Mary, Seaton, Sidmouth and Woodbury) the largest of which are the coastal resorts of Exmouth and Sidmouth, and the rural inland settlement of Honiton: Exmouth: With a population of almost 36,000, Exmouth is the largest urban area within East Devon. The town’s seafront, expansive sandy beaches, and estuary location make it a popular seasonal visitor destination. Sidmouth: Located to the east of Exmouth, and 15 miles south east of Exeter, Sidmouth is the second largest conurbation in the district with a population of just over 14,000, which is swelled by year round tourism. The town has rich architectural value, with large parts designated as a conservation area, and has become a popular location to both visit and live. Honiton: The market town of Honiton is the third largest of East Devon’s towns, with a population of just over 11,600. The town is situated at the junction of the A35, A30, and A373 roads and acts as centre for shopping, employment and services for the surrounding rural areas. 1 Defra (2011) Local Authority Rural-Urban Classification 2 East Devon Area Profile 1.6 Significantly, the ‘West End’ of the district is part of the Exeter and East Devon Growth Point – a public and private sector partnership to support sustainable economic growth over the next 20 years. The development programme will result in additional jobs and the diversification of the local employment base, as well as new homes and the creation of new communities. A Well Connected District with a Large Commuter Population 1.7 Despite its rural nature, the district is relatively well connected. The A30/A303 provides the main access route out of the district to South Somerset and West Dorset as well as London and the South East, whilst the M5 provides access to London and the north of the county, via Exeter. London can be reached in about three hours by road. In terms of rail, a commuter line links Exmouth to Exeter, whilst a mainline rail service provides regular links to London. 1.8 Commuter flows are a key aspect of East Devon’s spatial economy. The Annual Population Survey indicated a commuting outflow of 19,037, and inflow of 6,448 in 2012, providing a net flow of workers out of the district of 12,589. The largest proportion of all out- commuters went to Exeter, followed by West Dorset and South Somerset. Report Structure 1.9 The remainder of the report is structured as follows: Chapter 2 sets out the current structure and activity of East Devon’s Labour Market. Chapter 3 sets out the current economic performance of the East Devon business and employment base. Chapter 4 sets out economic forecasts for the district. Chapter 5 summarises the key messages and implications of current and future trends for economic development in East Devon. 3 East Devon Area Profile 2 The East Devon Labour Market Key Messages East Devon is the county’s largest district in population terms, offering residents a choice of both urban and varied rural locations. The district has a very small working age population in relative terms and benefits from an exceptionally high employment rate driven by low levels of
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